Cost cutting, popular titles help steer ship around
Cost cutting and a lineup of more popular titles has helped THQ put the brakes on its bleeding bottomline.
While the videogame publisher still reported a loss of $10.4 million during the last three months, it was better than the nearly $97 million it lost during the same fourth quarter a year ago.
It’s a good sign for the videogame biz considering sales have taken a big hit due to the recession and hints of positive results from bigger rivals like Activision Blizzard and Electronic Arts during this earnings season.
The strong performance was attributed to the nearly $198 million that the Agoura Hills, Calif.-based company generated in revenue during the period, which ended March 31, an uptick of 16%.
The sales figures were attributed mostly to the launch of “Darksiders” and “Metro 2033.”
THQ’s full year also improved with the company posting a $9 million loss versus $431 million during the previous year. Revenue for the year rose 8% to $899 million, thanks to its “Darksiders,” “Red Faction” and “UFC” franchises.
It will release “UFC Undisputed” during the current quarter.
“We have streamlined our cost structure, which will provide us with increased operating leverage in our model as our business continues to grow,” said THQ president and CEO Brian Farrell. “We’ve positioned THQ to capitalize on both traditional and digital gaming opportunities going forward.”